MKH Annual Report 2020

205 MKH BERHAD 32. LOANS AND BORROWINGS (CONT’D) Term loan VIII of RM178,407 (2019: RMNil) is part of the total term loan of RM25,500,000, which is repayable by 8 quarterly principal instalments of RM3,187,500 each or any balance outstanding with the first repayment to commence on 27th month following the date of first drawdown or payment by way of redemption whichever is earlier. The term loan is secured and supported as follows: (a) specific debenture on fixed and floating charge over all assets of the project of a subsidiary; (b) charge over designated account; and (c) corporate guarantee of the Company. Term loan IX of RM68,038,541 (2019: RM108,321,369) is repayable in 20 quarterly principal instalments commencing 9th month from the day of first drawdown. Secured revolving credit IX of RM52,026,525 (2019: RM56,447,955) is repayable on demand. The term loan and revolving credits are secured and supported as follows: (a) legal charge over the oil palm plantation land of a subsidiary in Indonesia; (b) pledged of shares of a subsidiary; and (c) corporate guarantee of the Company. Term loan X of RM4,911,304 (2019: RM9,784,312) is repayable in 12 quarterly principal instalments commencing 48th month from the day of first drawdown. The term loans are secured and supported as follows: (a) facility agreement and security sharing agreement; (b) legal charge over the oil palm plantation land of a subsidiary in Indonesia; (c) deed of fiduciary by way of fixed and floating charge over the oil palm plantation in Indonesia; (d) charge over a designated bank account of a subsidiary in Indonesia; (e) pledge of 95% shares of a subsidiary and substantial shareholder of a subsidiary; (f) assignment over all applicable insurance policies; (g) negative pledge over a subsidiary’s assets; and (h) corporate guarantee of the Company. Notes to the Financial Statements FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2020